Coherent (COHR) reported net income of $384.7 million in the first fiscal quarter of 2027, ended September 30, 2026, up 70.2% from $226.3 million in the same period a year earlier. Earnings per share (EPS) were $1.90, compared with $1.19 a year earlier. Revenue totaled $2.37 billion, growth of 49.9% year over year and 15.9% over the prior quarter.
GAAP gross margin was 39.1%, up 254 basis points in one year. GAAP operating income reached $377.9 million, with a margin of 15.9%. On an adjusted basis (non-GAAP, which excludes items such as stock-based compensation and amortization of intangibles), net income was $422.0 million, adjusted EPS was $2.09 (vs. $1.16) and adjusted gross margin was 40.6%.
Datacenter and Communications revenue was $1.95 billion, versus $1.09 billion a year earlier. Revenue from the Industrial division was $418.6 million, compared with $491.4 million. On a pro forma basis, which excludes divested businesses, revenue rose 56%. Operating cash flow was negative $92.7 million, and capital expenditures totaled $775.5 million. Long-term debt was $3.98 billion, and cash was $1.55 billion.
For the second fiscal quarter of 2027, the company projects revenue between $2.55 billion and $2.75 billion, adjusted gross margin of 40% to 42% and adjusted EPS between $2.28 and $2.48. Adjusted operating expenses are expected to be between $430 million and $450 million.
Coherent expects pro forma revenue growth above 60% in fiscal year 2027, the first quarter with $3 billion in revenue by the end of fiscal year 2027 and the first with $4 billion in fiscal year 2028. The new target is to reach adjusted gross margin above 45% in a quarter before the end of 2028.
